The second week of June was exciting for the cryptocurrency markets. Arguably the biggest news was that the US Securities and Exchange Commission (SEC) officially announced that Ethereum (ETH) is not classified as a security under federal law. The decentralized nature of ETH is the key factor in the decision. However, Ripple (XRP) and other utility tokens are still in legal limbo, as the SEC's William Hinman indicated in his speech that utility tokens can still be securities. Further regulatory clarity will be needed in the future.
Here's the rest of the week in review:
A UK cycling shop is launching the first-ever cryptocurrency electric bike. It will allow riders to generate rewards in the LoyalCoin token, equivalent to about $26.50 per thousand miles. The crypto e-bike is an example of blockchain-based loyalty programs that have recently cropped up.
Hollywood is considering making a film about cryptocurrency. The pioneering project will be named Crypto. Its plot will involve a federal agent who gets caught up in the world of cybercrime, crypto, and corruption. Alexis Bledel, Kurt Russell, and Beau Knapp will reportedly star in the thriller. Viewers might be interested in how Hollywood decides to portray crypto.
The CEO of Western Union (NYSE: WU) expressed disappointment in its partnership with Ripple Labs. Hikmet Ersek stated that the pilot project with XRP has not resulted in significant cost savings in the last six months. But Ersek remains optimistic, noting that only payment transfer tests with US dollars and Mexican pesos have been run. He added that he wishes to continue the Ripple partnership.
The state of New York has approved the trading of Stellar lumens (XLM). New York's Department of Financial Services gave the green light to ItBit, allowing the exchange to add XLM to its platform. Regulators also awarded the crypto storage company Xapo a BitLicense. The move likely means that New York does not consider XLM to be a security.
The controversial white nationalist Steve Bannon is interested in creating his own crypto. In a New York Times interview, he came out as a believer passionate about crypto's decentralized libertarian ethos. He also stated he wants to create a new crypto called "deplorables coin." White nationalists and the alt-right community are especially fond of Monero (XMR) and other privacy coins.
A crypto mining startup is looking to be the first crypto company listed on the London Stock Exchange. Argo Blockchain announced that it intends to raise £20 million for an initial public offering, at a valuation of £40 million. The firm offers mining services for Ethereum, Ethereum Classic (ETC), Bitcoin Gold (BTG), and Zcash (ZEC). Argo is expanding its operations in China and Canada.
Crypto prices fell broadly this week to under $300 billion, thanks to negative news. Trader Ran Neu-Ner stated that the bottom is yet to come. Although the technical signals look bearish, now could be a good time for long-term investors to scoop up some cheap coins.
The author does not hold any positions in any of the securities above.